Lifestyle Audits and Asset Traces

What
is a lifestyle audit?

The objectives of a
lifestyle audit are to determine the balance of income versus expenses.
Enquiries through third party sources can provide valuable information to
determine the expenditure habits of an individual. These habits can then be
compared to the declared income of the individual. Once you identify that the
person lives beyond his declared income, then suspicion is raised about
potential undeclared income to support expenditure habits.

An individual that tend to
live an extravagant lifestyle are often well beyond their means. This is
normally a signs of suspicion that something is not right. A lifestyle audit
will determine whether it is possible. However, there have been instances where
the lifestyle audit determined that the individual inherited a substantial
wealth or has support from a wealthy partner or family member.

The extravagant lifestyle of
an individual within a company will attract attention, especially if the person
is employed in a position if trust. This is then reason for concern that fraud
indicators are present. Proper controls, procedures and systems may reduce the
risk of fraud but will assist in detecting it.

What
is asset tracing?

It is a process whereby
investigators “follow the money” to determine whether assets acquired by a
fraudster was through the proceeds of crime. The assets identified through this
process are evidence in support of fraud or corruption matters. Asset
forfeiture is the next logic step in order to secure the assets and to
compensate the victim for the losses suffered.

Tracing of assets must be
done at an early stage of any financial investigation in order to secure it
before the fraudster may dispose of it.

What
are included in Lifestyle Audit or Asset traces?

In short it is anything that can be converted into money.
Often included in the search for assets are:

Properties;

Stocks
and shares;

Vehicles;

Businesses;

Intellectual
property rights;

Undeclared
bank accounts;

Livestock;

Expensive
items for example: Jewellery, art, household furniture etc;

And
of course money in bank accounts.

What
are Lifestyle Audits and Asset traces used for?

The outcome of investigations can be used for the
following:

Support
in criminal cases;

Support
in civil litigation; and

Support
in a divorce case.

Read our following blog to
find out more in depth how Asset Traces and Lifestyle Audits work and how it
can suit your needs.

Contact Uphando Forensic and
HR Services for a non obligatory meeting if you are considering a Lifestyle
Audit or Asset Trace.